LIMA - China and Peru have agreed to conduct a feasibility study on a proposed transcontinental railway connecting Peru's Pacific coast with Brazil's Atlantic coast.

The two governments agreed on this during Chinese Premier Li Keqiang's official visit to Peru, a Latin American country which has a free trade pact with China and wishes to diversify its economic cooperation with China.

The Chinese side is interested in taking part in the potential project, which would benefit both countries as Latin America has an urgent need to upgrade its infrastructure and China wishes to export its industrial capacity and investment.

Li has just arrived in the Peruvian capital, which is the third leg of his four-nation tour to Latin America after Brazil and Colombia. He will also visit Chile.